The Growing Toll of Retail's Theft Surge
Independent Retailers Detail Dealing With Theft for Better or Worse

From upgrading security systems to working closely with local police detectives, stores are taking measures to prevent further theft.

While a certain amount of theft has always been among retailers' costs, recent shoplifting and robberies have taken an even greater toll on independent stores.

Unlike nationwide retailers that have multiperson loss prevention teams and ample capital to try to thwart thieves, smaller chains or one-unit stores don't have the same degree of manpower or money to combat the problem. In addition, the theft of tens of thousands of merchandise and the costly preventive measures that are needed in response to such incidents chips away at their bottom lines.

A handful of stores in New York City, Seattle, Chicago and Denver spoke with WWD about how they are regrouping, or in one instance closed, due to the ongoing issue of shoplifting and theft. And it's not just designer products that are being stolen - so are Jordan sneakers and athletic jerseys. Instituting a minimal crime hike fee for all purchases, working with local police detectives and upgrading security systems are some of the methods that stores are using to try to safeguard against the problem.

After five burglaries in the past two years, the sneaker-centric Flee Club in Chicago is planning "a slow relaunch" in another city, said manager Jerry Walker. An overnight robbery earlier this month of Amiri denim, Gallery Dept. and other goods resulted in a loss in the "tens of thousands," he said.

Complicating the issue for small business owners is insurance reimbursement for the wholesale price instead of full retail, not to mention insurance premium hikes - 15 percent increases for Kirna Zabête. After the repeat offender thieves were arrested, she asked about the prospect of retrieving any of the stolen merchandise but learned it had already been resold via consignment shops.

"I don't know what the answer is. But having your team afraid to go to work is no way to live in America in this day and age," Buccini said.

Unlike from 2014 to 2019, when there were normal levels of shoplifting and theft, Friedman said there is "a different kind of shoplifting - armed shoplifting or shoplifting that doesn't even pretend to acknowledge that this is against the law or that they could suffer some consequence."

Friedman attributes the behavioral change to the threshold of what is a deemed a misdemeanor versus a violation, as well as whether the accused are being held following their arrests. In 2020, Colorado lawmakers eliminated cash bail for minor offenses. wwd.com

Federal ORC Bill Introduced in the U.S. House
Rep. Young Kim introduces bill to address organized retail crime
House Small Business Innovation, Entrepreneurship and Workforce Development Subcommittee Ranking Member Young Kim (CA-39) introduced the Improving Federal Investigations of Organized Retail Crime Act (H.R. 7499), a bipartisan bill to help address organized retail crimes hurting retailers and endangering public safety.

According to a 2019 report by the Retail Industry Leaders Association and Buy Safe America Coalition, as much as $68.9 billion worth of products were stolen from retailers in 2019. Retail crime results in $125.7 billion in lost economic activity, over 658,000 fewer jobs that would have paid almost $39.3 billion in wages and benefits to workers. It also costs federal and state governments nearly $15 billion in personal and business tax revenues, not including the lost sales taxes.

The Improving Federal Investigations of Organized Retail Crime Act directs the Department of Justice, the Department of Homeland Security, the U.S. Postal Service and other relevant agencies to create a cohesive strategy and reporting to Congress on how the federal government can:

● Improve coordination and information sharing among federal law enforcement agencies;

● Increase collaboration with retailers, ORC associations and state-run retail crime taskforces; and,

● Assist state and local authorities in compiling evidence for the prosecution of organized retail crime.

"Organized retail crime is a real threat to public safety and the economy. The Orange County Business Council is proud to support Rep. Kim's efforts to better coordinate the federal response to these criminal enterprises so Orange County's diverse, resilient retailers can be more assured these acts will be prevented and prosecuted," said Jeff Ball, President and CEO, Orange County Business Council.

"The rapid rise in organized retail crime in California is hurting employees, consumers and store owners and international crime rings are contributing to this problem. The federal government has an important role to play in stopping ORC. We appreciate the leadership of Congresswoman Kim and the co-sponsors of HR 7499 in bringing this legislation forward," said Steve McCarthy, California Retailers Association Vice President of Government Affairs and Policy. oc-breeze.com

New Retail Theft Bill - Too Little, Too Late?
Measure aimed at thwarting ORC criticized for not going far enough
Lawmakers passed legislation addressing organized retail crime in Illinois, but some are saying the measure is watered down. There have been several incidents of "smash-and-grab" crimes in Illinois, including on the Magnificent Mile in downtown Chicago and in Oak Brook.

House Bill 1091 defines organized retail crime in state law with the intent of reducing offenders' ability to avoid prosecution. Supporters, among them the Illinois attorney general and the Illinois Retail Merchants Association (IRMA), called the measure one of the strongest actions in the country to define organized retail crimes while increasing a prosecutor's ability to hold criminals accountable.

Republicans, for the most part, voted in favor of the bill, but several GOP lawmakers called it watered down legislation and removed their names as cosponsors after a late amendment was filed to appease crime victims groups and the American Civil Liberties Union.

The amendment changed a part of the bill to identify ringleaders of organized retail crime rings, creating bigger penalties for them than for lower-level thieves who steal from stores and may be victims of human trafficking.

Victims of organized retail theft, including retail establishments, will have a right to at least seven days notice of all court proceedings under the bill.

"If you vote yes for this bill, you are telling me and everyone in the state of Illinois that you care more about the retailers and the businesses in your districts than the victims of a violent crime," said state Rep. Kelly Cassidy, D-Chicago. Cassidy voted against the measure early Saturday morning.

House Minority Leader Jim Durkin, R-Western Springs, said there are parts of the bill regarding the sale of stolen items online that work, but when cash bail ends in January, offenders will be released to commit "smash-and-grab" thefts again. kpvi.com

   RELATED: New bill would crack down on ORC in multiple ways amid crime spike

Private Cops Patrolling Stores - The New Normal?
Can private beat cops make a difference to security? Local businesses hope so
A group of local businesses and retailers in Bakersfield called O & A Security Services, a private security company whose officers are "walking the beat" in a limited area of downtown seven days a week as a means of supplementing the waning presence of Bakersfield Police Department officers.

The contract - negotiated by the Downtown Business Association, 25 downtown business owners and O & A - has been in place for less than three weeks, but some downtown business owners say they are already seeing a positive difference.

Tina Brown, the owner of Tina Marie's restaurant at 19th and Eye streets, said getting 25 business owners to come together as a group to spend money on additional security is worth celebrating. The effort is a pilot project. It's designed to keep what works and chuck what doesn't, to work the bugs out and zero in on effective strategies.

"This is just a beginning," Brown said. "But you might be seeing the start of something here."

Perdue said he's happy with what he's seeing so far, but he has yet to be completely convinced of the value of the pilot program, and remains one of several business owners in the area who has not signed onto the contract to help spread the cost.

Mario Alvarez, who has been doing business downtown since the early 1970s, owns and operates Pacific Jewelry Co. on Chester Avenue. He also has not signed on.

"The best time we ever had with security downtown was when we had a beat cop," he said of the days of old when the BPD had walking patrols downtown. "There's a difference between a beat cop and a security guard," he said. "It's not just psychological. It's real." bakersfield.com

After subway shooting, New York City mayor says rise in crime a 'national issue'

Retail's Union Push Continues
Apple retail union organizers want workers to be paid at least $30 per hour

Employees organizing a union at Apple's Grand Central Terminal store are seeking minimum pay for all workers of $30 per hour.

Workers who hope to organize a union at Apple's Grand Central Terminal store want workers to be paid a minimum of $30 per hour, according to a website for the group, Fruit Stand Workers United, that was updated on Monday.

Employees at Apple's high-profile store in New York City started to take steps to unionize earlier this year, posting the first public-facing website announcing their effort over the weekend.

The request for increased wages shows Apple's wage workers believe they're more valuable in a tight labor market.

Apple employees can make from $17 to more than $30 per hour, depending on their market and experience, The Washington Post reported Saturday. On Monday, Verizon, a retail competitor in the market for phones, said it would raise its minimum wage to $20 per hour.

It's the latest sign that workplace activism is rising across the country during an inflationary environment and as the Covid-19 pandemic has forced frontline workers to reexamine the risks and benefits of their jobs. cnbc.com

Retail Wages in the Spotlight
Most workers at large retail & food corporations receive less than $15/hour
Some of the largest, most profitable companies in retail and food services are still paying most of their workers less than $15 an hour, and many still make less than $10 an hour, according to a new company wage tracker developed by the Economic Policy Institute and the Shift Project.

The tracker, which covers 66 large retail and food service corporations, found:

● Dollar General pays 92% of workers less than $15 an hour and 22% are paid less than $10 an hour.
● McDonald's pays 89% of its workers less than $15 an hour and 23% are paid less than $10 an hour.
● Wendy's pays 87% of workers less than $15 an hour and 17% are paid less than $10 an hour.
● At Sonic, 85% of workers are paid less than $15 an hour and 22% less than $10 an hour.

More than half of workers at Dunkin' Donuts, Starbucks, Chick-Fil-A, Domino's, IHop, GameStop, Chipotle, Jimmy John's, Best Western, Bath & Body Works, Cracker Barrel, Gap, Food Lion, Kohl's, Hannaford, Lowe's, Marriott, Marshalls, Meijer, Michaels, Panera Bread, Papa John's, Publix, Rite Aid, Ross, Speedway, Stop & Shop, Subway, Tractor Supply Co, Victoria's Secret, Waffle House, Walgreens, Walmart and Wyndham Hotels & Resorts are paid less than $15 an hour.

He also noted that in addition to the low wages many of these firms pay, the job quality is poor in terms of the lack of benefits, paid time off, erratic scheduling and insufficient hours. theguardian.com

Retail's Ongoing Wage War
Verizon Raises Minimum Wage for Retail, Customer Service Staff to $20 Per Hour

The increase will automatically apply to both new and existing retail, sales and customer service employees.

Verizon is upping its minimum wage, announcing on Monday that it will now pay at least $20 per hour to retail, sales and customer service teams nationwide. The company says that the new increase will automatically apply to new hires, while current employees will have their rates automatically adjusted.

For retail and inside sales -- Verizon staff who work on small and medium businesses -- the rate will be when the "base salary plus target commission are combined." In addition to the wage increase, the company says it is adding in "premium pay differentials" for assistant managers who work on Sundays and holidays as well as for those who are bilingual.

The company will also be offering sign-on bonuses for retail specialist and assistant manager positions in "many markets around the country." cnet.com

Aldi keeps expanding across the U.S.
Aldi continues to open new stores across the U.S. with its number of units expected to grow to 2,300 in 2022, up from 2,200 last year. The chain uses low prices on primarily private label goods backed by a customer satisfaction policy to attract shoppers.

Popeyes to open 200-plus restaurants in U.S., Canada in 2022

Lawmakers say higher credit card swipe fees would add to inflation

7-Eleven Owner Brings In Former Uber Exec To Ramp Up U.S. Growth

FDA investigating claims that Lucky Charms is making people sick
 

Senior LP & AP Jobs Market

Vice President Security job posted for Swift Transportation in Phoenix, AZ
Ensure the security of personnel and assets. Manage the operations of the security department. Develop, implement, and maintain all security and theft deterrent processes related to personnel security and asset security including fuel. Oversee incident investigations and background investigations of prospective employees. indeed.com

Senior Director - Supply Chain AP job posted for The Home Depot in Atlanta, GA
The Senior Director, Supply Chain Asset Protection will be responsible for driving consistency in the execution and monitoring of Asset Protection strategies relating to theft and fraud mitigation, operation excellence, safety and environmental compliance. This role will identify potential for loss and partner cross-functionally with corporate and field teams to develop strategies to eliminate loss. careers.homedepot.com

Director, AP Analytics job posted for The Home Depot in Atlanta, GA
In this role, the Director, Asset Protection Analytics will manage people and processes related to advanced analytics in support of the Asset Protection initiatives with the primary goal of mitigating shrink. This role works closely with the leaders within Asset Protection as well as other Operations groups in defining the analytical strategy and approach for projects and processes. careers.homedepot.com

Dir. AP (Denver Division) job posted for Albertsons in Centennial, CO
Provide positive/proactive leadership, and instruction in the area of Security/Loss Prevention. Promote workable, realistic Loss Prevention programs that foster a safe shopping and working environment for our customers and associates as well as protecting company assets. This will be accomplished while preventing crime and loss to the company. eofd.fa.us6.oraclecloud.com

Dir. Distribution & Supply Chain AP job posted for Burlington in Burlington, NJ
As the Director of Distribution and Supply Chain Asset Protection you will support both shortage and overall company objectives by directing all Asset Protection activities in Burlington's distribution and supply chain network. This role will develop the strategy and oversee AP and security operations at all Burlington distribution centers. burlingtonstores.jobs
 

Last week's #1 article --

As Remote Work Becomes Permanent, Can Manhattan Adapt?

Nashville, TN: Fugitive wanted after stealing more than $100K worth of items from Lowes, Home Depot
Metro police are on the search for a man who is accused of stealing thousands of dollars worth of merchandise from home improvement stores in Nashville. According to Metro police, fugitive Robert Anthony Scales, 56, reportedly stole more than $112,000 worth of merchandise from Lowes and Home Depot stores in the Nashville area. The most common item that Scales allegedly stole included spooled copper wire. Authorities said Scales used a cart to take the wire from the stores and bypassed the register. Metro police said on two occasions Scales showed a gun to loss prevention personnel who tried to stop him in the parking lot. Scales is wanted on two counts of aggravated robbery and eight counts of theft.  wjhl.com

Kansas City, MO: Thieves target four KC-area CVS locations
Four men walked right into a local CVS in broad daylight and stole prescription drugs on Easter Sunday. Police learned the men targeted not just one, but a total of four stores in what police have described as a coordinated effort. Now the question is if federal authorities will get involved. In the video above, the men walk in, one of them stays at the front of the store as a lookout and the other three head straight to the pharmacy. "Somehow they were able to get in the locked door immediately, went to where the promethazine and codeine were stored, filled up backpacks and their arms and quickly left," Grandview Police Capt. Ryan Sharp said.

The coordinated operation at the Grandview CVS location happened in under a minute. "We're not sure if they had a master key. They may have gotten them in or somehow was able to get in through the locked door," Sharp said. The suspects also hit locations in Mission and Leawood, Kansas; and Kansas City, Missouri. CVS told FOX4 no employees at any of the four locations targeted were hurt during the incidents. "We're reaching out with the other agencies that have let us know that these things have happened, trying to link up to see what evidence they have verse what we have," Sharp said. FOX4 reached out to the Drug Enforcement Agency, which said this is a case they would typically investigate. But the DEA said it could neither confirm or deny if the agency is looking into the matter. fox4kc.com

Temple, TX: 2 suspects steal over $2,000 of meat from H-E-B
The Temple Police Department said its officers were called out to the H-E-B in the 3000 block of South 31th Street around 3:30 p.m. regarding a theft that was happening. When officers arrived, they learned that two women stole over $2,000 worth of meat from the store and got away, police said. During their investigation, they learned that a store employee noticed the two exit the store with a large amount of unpaid meat in a shopping cart, police said. The employee tried to stop them, but they were able to pull the cart away and load all the stolen meat in their vehicle, police added. Temple PD said the two suspects then let the shopping cart run into another vehicle in the parking lot and damaged it. kcentv.com

Chesterfield County, VA: Two suspects steal $1,300 in electronics from Southpark Walmart, pepper spray employee
Chesterfield and Colonial Heights Crime Solvers are seeking the public's help with identifying two suspects who stole over a thousand dollars worth of merchandise from the Southpark Boulevard Walmart. On March 19, at 5:21 p.m., a male and female suspect entered the Colonial Heights Walmart at 671 Southpark Boulevard and concealed several items, according to police. The items included computers and electronics valued to be over $1,300. As the suspects were exiting the store, the Loss Prevention Officer attempted to stop them - but was ultimately pepper sprayed by the female suspect. wric.com

Fresno, CA: Local Western Wear store owner is out $1500 in grab and run theft